Bitcoin fell below $95,000, while the technology-heavy Nasdaq 100 index dropped for the second consecutive day ahead of NVIDIA’s earnings.
Bitcoin (BTC) declined to $93,690, down 13.3% from its highest level this year. Meanwhile, the Nasdaq 100 index has fallen for three straight days, reaching a low of 21,360, 3.5% below its highest level this month.
The main catalyst for Bitcoin and U.S. stocks this week will be NVIDIA’s upcoming earnings report, which will offer insights into the state of the artificial intelligence industry.
These results are particularly significant given NVIDIA’s size and influence in the AI sector. It is the second-largest company by market capitalization, valued at over $3.285 trillion, trailing only Apple. It is also the second-largest constituent of the Nasdaq 100.
Additionally, NVIDIA has become the poster child of the AI industry, playing a key role in the stock market rally over the past two years. As such, signs of a slowdown could trigger a major sell-off in both equities and crypto, as the two markets are often correlated.
According to Yahoo Finance, analysts expect NVIDIA’s revenue to reach $38.15 billion, a 72% increase from the same quarter in 2023.
Bitcoin and the Nasdaq 100 have also retreated amid concerns over Donald Trump’s proposed tariffs. The former president has warned that steel and aluminum tariffs will take effect on March 1. Additionally, a 25% tariff on Mexican and Canadian goods is set to begin on the same day unless a deal is reached.
Tariffs could impact Bitcoin’s price by fueling inflation, which may prompt the Federal Reserve to maintain a hawkish stance. Risk assets, including Bitcoin, tend to underperform in a hawkish Fed environment. In a note sent to crypto.news, James Toledano, the Chief Operating Officer of Unity Wallet said:
“I think the sentiment and expectation around Bitcoin’s price is that it should be going stratospheric since President Trump took office on Jan 6th. But the reality is that the price has gone south, likely due to tariff trade wars, fragile peace talks in Eastern Europe, fears around DeepSeek’s impact on the US tech sector.”
Bitcoin price may still rebound
Technical indicators suggest that Bitcoin may stage a rebound this week. On the daily chart, Bitcoin has formed a falling wedge pattern, with the two trend lines nearing their confluence point. A bullish breakout typically occurs when this confluence is about to happen.
Additionally, the two lines of the MACD indicator are nearing a bullish crossover. Historically, such crossovers have preceded brief or prolonged rebounds. A bullish breakout could push BTC’s price back toward $100,000 in the near term.
